Swap Fees
Understanding the fee structure for trading song tokens.
Fee Structure
| Fee Type | Amount | Recipient |
|---|---|---|
| Swap Fee | 1% | LP Position |
| Gas | Variable | Network |
How Fees Work
Swap Fee (1%)
Every trade on Uniswap V4 incurs a 1% fee:
User buys 1,000 tokens for 0.1 ETH
Swap fee: 0.001 ETH (1%)
User receives: 1,000 tokens
Pool receives: 0.099 ETH + 0.001 ETH fee
Fee Collection
The platform owns the initial LP position:
- Fees accumulate in the position
- Platform can claim fees periodically
- Fees fund platform operations
Fee Calculation
// Uniswap V4 pool configuration
uint24 fee = 10000; // 1% = 10000 bps
// Fee calculation
uint256 feeAmount = (swapAmount * fee) / 1_000_000;
Gas Costs
Gas costs vary by network conditions:
| Operation | Typical Gas | Cost (@ 0.01 gwei) |
|---|---|---|
| Swap | ~150,000 | ~$0.01 |
| Add Liquidity | ~200,000 | ~$0.02 |
Why 1% Fee?
- Sustainable revenue for platform
- Competitive with other DEXs
- Low enough for active trading
- High enough to discourage manipulation